Beyond the headline.
Inside the numbers.
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Lattice supplies low-power programmable chips. The completed AMI acquisition adds firmware and infrastructure management software, while the original chip business is exceeding its earlier revenue forecast.
Lattice Semiconductor Corporation (Nasdaq: LSCC) supplies low-power programmable chips, known as FPGAs. Equipment makers configure them for functions such as hardware control, connectivity and security. The AMI acquisition added firmware, the low-level software used to start and manage computers and servers.
Lattice completed the AMI acquisition on July 27, 2026. It announced an approximate $1.65 billion transaction value, comprising roughly $1 billion of cash and $650 million of stock, with the stock consideration adjusted for the pre-closing share price. Approximately 5.2 million shares were issued.
The nine-month cash-flow statement records $971.3 million paid for the acquisition after acquired cash. Net borrowing proceeds were $912.7 million and debt repayments $50 million during that period.
The current quarter ended October 3, 2026; the comparable 2025 quarter ended September 27. Amounts are USD millions except per-share figures. The current period includes AMI from July 27, while the earlier period does not.
| Results | 2026 | 2025 |
|---|---|---|
| Revenue | 291.0 | 133.3 |
| Net income, GAAP | 11.2 | 2.8 |
| Adjusted net income | 103.7 | 38.2 |
| Operating cash flow | 95.0 | 47.1 |
| Capital spending | 17.4 | 13.1 |
| Free cash flow | 77.6 | 34.0 |
Compute and Communications revenue was $171.9 million, Industrial and Embedded $80.0 million, and AMI $39.1 million. The first two categories form the original chip business, with about $251.9 million of sales and roughly 90% year-over-year growth.
On August 4, Lattice forecast original chip-business revenue of $210 million to $230 million and total revenue, including AMI, of $245 million to $265 million. Actual results exceeded both ranges. Adjusted earnings of 72 cents per share also beat the earlier 54-to-58-cent range.
For the fourth fiscal quarter, management expects total revenue of $325 million to $345 million and adjusted earnings of 82 to 86 cents per share. The forecast includes a full quarter of AMI.
Reported earnings were 8 cents per diluted share, compared with 72 cents adjusted. Adjusted net income removes stock compensation and specified equity incentives, acquisition expenses, acquired-asset accounting charges and other items, with tax adjustments. The largest exclusion was $50.7 million of stock compensation and related payroll taxes.
Reported net income fell from $19.4 million in the preceding quarter to $11.2 million, while adjusted net income increased. Free cash flow, defined as operating cash flow less capital spending, was $77.6 million compared with $81.3 million in that preceding quarter. It excludes acquisition payments.
At October 3, cash was $128.3 million and the balance-sheet value of debt $869.1 million. Over the first nine months, operating cash flow was $233.6 million and capital spending $35.0 million. Future reports can test growth in the chip business, AMI's contribution and debt reduction.
Analysis LSCC
Lattice’s sales rose 118% after buying AMI. Our comparison shows the original chip business also beat its forecast, with new debt and large profit adjustments to track.